Dollar flat around ¥111.45 in Tokyo after cutting early gains

The dollar was flat around ¥111.45 in late Tokyo trading Wednesday after cutting its early gains.

At 5 p.m., the dollar stood at ¥111.45-46, against ¥111.45-45 at the same time Tuesday. The euro was at $1.1555-1556, down from $1.1569-1569, and at ¥128.79-79, down from ¥128.94-95.

The dollar rose near ¥111.70 in midmorning trading thanks to purchases by Japanese importers, but it returned to levels around ¥111.50 in the afternoon as the buying ran its course, traders said.

“Sluggish performance of Japanese and Chinese stocks put downward pressure on the dollar versus the yen,” said an official of a foreign exchange margin trading service company.

Meanwhile, uncertainty was looming over U.S.-Canada talks to revise the North American Free Trade Agreement, the traders said. The two countries will resume their discussions later on Wednesday.

Market players are also jittery over the third round of additional tariffs on Chinese imports that U.S. President Donald Trump’s administration is expected to launch this week, the traders said.

The impact would vary depending on whether the administration will impose the tariffs on the planned $200 billion worth of Chinese products at a time or in stages, said an official of a bank-linked securities firm.